Finala Project Aproved.

CHAPTER 1
INTODUCTION
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1.1 Marketing Channels
A marketing channel can be viewed as a large canal or pipeline through which products,
their ownership, communication, financing and payment, and accompanying risk flow
to the consumer. Formally, a marketing channel (also called a channel of distribution)
is a business structure of interdependent organizations that reach from the point of
product origin to the consumer with the purpose of moving products to their final
consumption destination. Marketing channels facilitate the physical movement of
goods through the supply chain, representing "place" or "distribution in the marketing
mix (product, price, promotion, and place) and encompassing the processes involved in
getting the right product to the right place at the right time.
Many different types of organizations participate in marketing channels. Channel

members (also called intermediaries, resellers and middlemen) negotiate with one
another, buy and sell products, and facilitate the change of ownership between buyer
and seller in the course of moving the product from the manufacturer into the hands of
the final consumer. As products move to the final consumer, channel members facilitate
the distribution process by providing specialization and division of labour, overcoming
discrepancies, and providing contact efficiency some things more efficiently than
producers because they have built good relationships with their customers. Therefore,
their specialized expertise enhances the overall performance of the channel
1.2 Channel Intermediaries and Their Functions
Intermediaries in a channel negotiate with one another, facilitate the change of

ownership between buyers and sellers, and physically move products from the
manufacturer to the final consumer. The most prominent difference separating
intermediaries is whether they take title to the product. Taking title means they own the
merchandise and control the terms of the sale-for example, price and delivery date.
Retailers and merchant wholesalers are examples of intermediaries that take title to
products in the marketing channel and resell them. Retailers are firms that sell mainly
to consumers.
Merchant wholesalers are organizations that facilitate the movement of products and
services from the manufacturer to producers, resellers, governments, institutions, and
retailers. All merchant wholesaler take title to the goods they sell, and most of them
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operate one or more warehouses where they receive goods, store them, and later reship
them. Customers are mostly small- or medium-sized retailers, but merchant wholesalers
also market to manufacturers and institutional clients. Other intermediaries do not take
title to goods and services they market but do facilitate the exchange of ownership
between sellers and buyers. Agents and brokers simply facilitate the sale of a product
from producer to end user by representing retailers, wholesalers, or manufacturers. Title
reflects ownership, and ownership usually implies control. Unlike wholesalers, agents
or brokers only facilitate sales and generally have little input into the terms of the sale.
They do, however, get a fee or commission based on sales volume. For example, when
selling a home, the owner usually hires a real estate agent who then brings potential
buyers to see the house. The agent facilitates the sale by bringing the buyer and owner
together but never actually takes ownership of the home. Variations in channel
structures are due in large part to variations in the numbers and types of wholesaling
intermediaries.
Generally, product characteristics, buyer considerations, and market conditions

determine the type of intermediary the manufacturer should use.
1.3 Channel Functions Performed by Intermediaries
Retailing and wholesaling intermediaries in marketing channels perform several

essential functions that make the flow of goods between producer and buyer possible.
The three basic functions that intermediaries perform are summarized
1. Transactional function
2. Logistical function
3. Facilitating function
Transactional functions involve contacting and communicating with prospective

buyers to make them aware of existing products and explain their features, advantages,
and benefits. Intermediaries in the channel also provide logistical functions.
Logistics functions is the efficient and cost-effective forward and reverse flow and
storage of goods, services, and related information into, though, and out of channel
member companies. Logistics functions typically include transportation and storage of
assets, as well as their sorting, accumulation, consolidation, and/or allocation for the
purpose of conforming to customer requirements. For example, grading agricultural
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products typifies the sorting-out process, while consolidation of many lots of grade A
eggs from different source into one lot illustrate the accumulation process,
Supermarkets or other retailers perform the assorting function by assembling thousands
of different items that match their customers' desires. Similarly, while large companies
typically have direct channels, many small companies depend on wholesalers to
promote and distribute their products.
Facilitating functions includes research and financing. Research provides information

about channel members and consumers by getting answers to key questions: Who are
the buyers? Where are they located? Why do they buy? Financing ensures that channel
members have the money to keep products moving through the channel to the ultimate
consumer.
1.4 Marketing Channels for Consumer Products

Direct channel Retailer channel Wholesaler channel Agent/broker
channel
Producer Producer Producer Producer
Agents or
brokers
Wholesalers Wholesalers
Retailers Retailers Retailers
Consumers Consumers Consumers Consumers
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1.5 Channels for Consumer Products
The four ways manufacturers can route products to consumers. Producers use the direct
channel to sell directly to consumers. Direct marketing activities-including
telemarketing, mail-order and catalog shopping, and forms of electronic retailing such
as online shopping and shop-at-home television networks-are a good example of this
type of channel structure. There are no intermediaries. Producer owned stores and
factory outlet stores-Fabindia, Westside, and Bata-are examples of direct channels. By
contrast, an agent/broker channel is fairly complicated and typically used in markets
with many small manufacturers and many retailers that lack the resources to find each
other. Agents or brokers bring manufacturers and wholesalers together for negotiations,
but they do not take title to merchandise. Ownership passes directly to one or more
wholesalers and then to retailers. Finally retailers sell to the ultimate consumer of the
product. For example, a food broker represents buyers and sellers of grocery products.
The broker acts on behalf of many different producers and negotiates the sale of their
products to wholesalers that specialize in food-stuffs. These wholesalers in turn sell to
grocers and convenience stores.
Most consumer products are sold through distribution channels similar to the other two
alternatives: the retailer channel and the wholesaler channel. A retailer channel is most
common when the retailers large and can buy in large quantities directly from the
manufacturer. Walmart, Sears, and car dealers are examples of retailers that often
bypass a wholesaler. A wholesaler channel is commonly used for low-cost items that
are frequently purchased, such as candy cigarettes, and magazines.
1.6 Making Channel Strategy Decisions
Devising a marketing channel strategy requires several critical decisions. Managers

must decide what role distribution will play in the overall marketing strategy. In
addition, they must be sure that the channel strategy chosen is consistent with product,
promotion, and pricing strategies. In making these decisions, marketing managers must
determine what factors will influence the choice of channel and what level of
distribution intensity will be appropriate.
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1.7 Factors Affecting Channel Choice
Managers must answer many questions before choosing a marketing channel. The final
choice depends on the analysis of several factors, which often interact. These factors
can be grouped as market factors, product factors, and producer factors.
Market Factors Among the most important market factors affecting the choice of
distribution channel are target customer considerations. Specifically, managers should
answer the following questions: Who are the potential customers? What do they buy?
Where do they buy? When do they buy? How do they buy? Additionally the choice of
channel depends on whether the producer is selling to consumers or to industrial
customers. Industrial customers' buying habits are very different from those of
consumers. Industrial customers tend to buy in larger quantities and require more
customer service.
The geographic location and size of the market are also important to channel selection.
As a rule, if the target market is concentrated in one or more specific areas, then direct
selling through a sales force is appropriate. When markets are more widely dispersed,
intermediaries would be less expensive. The size of the market also influences channel
choice. Generally larger markets require more intermediaries.
Product Factors Products that are more complex, customized, and expensive tend to
benefit from shorter and more direct marketing channels. These types of products sell
better through a direct sales force. Examples include pharmaceuticals, scientific
instruments, airplanes, and mainframe computer systems. On the other hand, the more
standardized a product is, the longer its distribution channel can be and the greater the
number of intermediaries that can be involved. For example, with the exception of
flavour and shape, the formula for chewing gum is about the same from producer to
producer. Chewing gum is also very inexpensive. As a result, the distribution channel
for gum tends to involve many wholesalers and retailers.
The product's life cycle is also an important factor in choosing a marketing channel. In
fact, the choice of channel may change over the life of the product. As products become
more common and less intimidating to potential users, producers tend to look for
alternative channels.
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Another factor is the delicacy of the product. Perishable products such as vegetables
and milk have a relatively short life span. Fragile products like bone china and crystal
require a minimum amount of handling. Therefore, both require fairly short marketing
channels. Online retailers such as eBay facilitate the sale of unusual or difficult-to-find
products that benefit from a direct channel.
Producer Factors Several factors pertaining to the producer itself are important to the
selection of a marketing channel. In general, producers with large financial, managerial,
and marketing resources are better able to use more direct channels. These producers
have the ability to hire and train their own sales forces, warehouse their own goods, and
extend credit to their customers. Smaller or weaker firms, on the other hand, must rely
on intermediaries to provide these services for them. Compared to producers with only
one or two product lines, producers that sell several products in a related area are able
to choose channels that are more direct. Sales expenses then can be spread over more
products.
A producer's desire to control pricing, positioning, brand image, and customer support
also tends to influence channel selection. For instance, firms that sell products with
exclusive brand images, such as designer perfumes and clothing, usually avoid channels
in which discount retailers are present. Manufacturers of upscale products, such as
Gucci (handbags) and Godiva (chocolates), may sell their wares only in expensive
stores in order to maintain an image of exclusivity. Many producers have opted to risk
their image, however, and test sales in discount channels. Louis Philippe expanded its
distribution to include Lifestyle stores, Future Group's Central Malls, and Brand
Factory outlets.
1.8 The Role of Retailing
Retailing-all the activities directly related to the sale of goods and services to the
ultimate consumer for personal, non-business use-has enhanced the quality of our daily
lives. When we shop for groceries, hair styling, clothes, books, and many other products
and services, we are involved in retailing. The thousands of goods and services
provided by retailers mirror the needs and styles of Indian society.
Retailing affects all of us directly or indirectly. The retailing industry is one of the
largest employers in India; Indian retailers employed about 4 crore people in 2010,
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accounting for 9.4 percent of all Indian employment. At the store level, retailing is still
largely a mom-and-pop business. The organized retail holds a share of just 6.5 percent
of the total retail market. However, the Indian retail market has been growing rapidly
over the last few years and has been ranked as the third most attractive retail market in
the world in the AT Kearney Global Retail Development Index 2010.
The Indian economy is heavily dependent on retailing. Retailers ringed up over

19,00,000 crore in sales in 2009-10, which is about 30 percent of gross domestic
product Although most retailers are quite small, a few organizations like Future Group,
Reliance Retail Ltd., and Aditya Birla Retail Ltd. have been operating at a massive
scale.
1.9 Importance of retailing in the Indian economy
Retailing plays a vital role in the Indian economy for two main reasons. First, retailing
industry is one of the largest employers in the country, employing about 4 crore people
Second, the contribution of retail industry to the country's GDP is quite significant at
around 30 percent. However, Indian retail industry is largely unorganized, with
organized retail having a share of just 6.5 percent of the total retail market.
1.10 Functions of Distribution Channels
So as to comprehend the significance of dispersion channels, you have to comprehend

that it doesn't simply cross over any barrier between the maker of an item and its client.
Dispersion channels give time, place, and possession utility. They make the item
accessible when, where, and in which amounts the client needs. Be that as it may, other
than these value-based capacities, advertising channels are additionally mindful to do
the accompanying capacities:
Coordination and Physical Distribution: Marketing channels are in charge of get

together, capacity, arranging, and transportation of products from makers to clients.
Help: Channels of circulation even give pre-deal and post-buy administrations like
financing, upkeep, data dispersal and channel coordination.
Making Efficiencies: This is done in two different ways: mass breaking and making
arrangements. Wholesalers and retailers buy extensive amounts of merchandise from
producers yet break the mass by pitching few at an opportunity to numerous different
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channels or clients. They likewise offer distinctive kinds of items at a solitary place
which is an immense advantage to clients as they don't need to visit diverse retailers for
various items.
Sharing Risks: Since the greater part of the channels purchase the items in advance,
they additionally share the hazard with the makers and do everything conceivable to
move it.
Advertising: Distribution channels are additionally called promoting channels since

they are among the centre touch focuses where many showcasing methodologies are
executed. They are in the immediate contact with the end clients and help the makers
in proliferating brand message and item benefits and different advantages to the clients.
1.11 Importance of distribution channel
Producers may dependably don't generally require conveyance channels. As talked

about, it relies upon a few elements. A portion of the importance’s are
1. They create exchange efficiency by reducing the number of contacts needed.
2. The distribution channels can perform many functions like transportation, storage,
selling, scale of operation and advertising better than the manufacturers.
3. Large manufacturing companies can reduce their costs and time required to reach
their products with the help of distribution channels.
4. These can offer promotion and financial support
1.12 Defining Wholesaling and Logistics
A wholesaler is an intermediary entity in the distribution channel that buys in bulk and
sells to resellers rather than to consumers. In its simplest form, a distributor performs a
similar role but often provides more complex services. Distributors and wholesalers
often work together as channel partners.
Logistics management is the part of supply chain management that plans, implements,
and controls the efficient, effective forward, and reverse flow and storage of goods,
services, and related information between the point of origin and the point of
consumption in order to meet customer's requirements.
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1.13 Channels and Distribution Decisions for Global Markets
With the spread of free trade agreements and treaties in recent decades, such as the
European Union and the North American Free Trade Agreement (NAFTA), global
marketing channels and management of the channels have become increasingly
important to Indian companies that export their products or manufacture abroad.
1.14 Developing Global Marketing Channels
Executives should recognize the unique cultural, economic, institutional, and legal
aspects of each market before trying to design marketing channels in foreign countries.
Manufacturers introducing products in global markets have to decide whether the
product will be marketed directly, mostly by company salespeople, or through
independent foreign intermediaries, such as agents and distributors. Using company
salespeople generally provides more control and is less risky than using foreign
intermediaries. However, setting up a sales force in a foreign country also entails a
greater commitment, both financially and organizationally.
Marketers should be aware that channel structures and types abroad may differ from
those in the United States. For instance, the more highly developed a nation is
economically, the more specialized are its channel types. Therefore, a marketer wishing
to sell in Germany or Japan will have several channel types to choose from. Conversely,
developing countries such as Ethiopia, India, and Venezuela have limited channel types
available, and they tend to shun the large-scale formats popular in the United States and
Western Europe. Marketers must also be aware that many countries have "gray"
marketing channels in which products are distributed through unauthorized channel
intermediaries. It is estimated that sales of counterfeit luxury items like Prada handbags
and Big Bertha golf clubs have reached almost 9000 crore a year. The Internet has also
proved to be a way for pirates to circumvent authorized distribution channels, especially
in the case of popular prescription drugs.
1.15 Channels and Distribution Decisions for Services
The fastest-growing part of our economy is the service sector. Although distribution in
the service sector is difficult to visualize, the same skills, techniques, and strategies
used to manage inventory can also be used to manage service inventory-for instance,
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hospital beds, bank accounts, or airline seats. The quality of the planning and execution
of distribution can have a major impact on costs and customer satisfaction.
One thing that sets service distribution apart from traditional manufacturing distribution
is that in a service environment, production and consumption are simultaneous. In
manufacturing, a production setback can often be remedied by using safety stock or a
faster mode of transportation. Such substitution is not possible with a service. The
benefits of a service are also relatively intangible-that is, a consumer normally can't see
the benefits of a service, such as a doctor's physical exam, but normally can see the
benefits provided by a product, such as cold medicine relieving a stuffy nose.
Because service industries are so customer oriented, customer service is a priority. To

manage customer relationships, many service providers, such as insurance carriers,
physicians, hair salons, and financial services, use technology to schedule appointments
manage accounts, and disburse information. Service distribution focuses on three main
areas:
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CHAPTER 2
REVIEW OF LITERATURE AND
RESEARCH DESIGN
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2.1 Introduction
He affirmation methodology of a displaying procedure of an association lies not
simply in achieving specific creation destinations and a real correspondence with
recipients in the midst of affirmation of the progression mastermind. Its reliable and
crucial factor is to give finished things to customers. A fundamental condition for
accomplishing objectives set out in the exchange is that the completed item addresses
the issues of the buyer, specifically it has a fitting structure and it is conveyed at the
correct time and place. To be docile with this prerequisite intends to make a move and
actualize the essentials incorporated into the advertising blend, which is the
appropriation of products — one of the procedures of market bolster, containing inside
itself every one of the choices and activities identified with the maker's
correspondence with end clients. Representatives make exhibiting allocation channel.
Scrambling channels can be besides depicted as publicizing channels or market
channels. A vehicle channel is a get-together of relied on each other connection units,
which are partaking in system of stream of things or associations shape makers to
purchasers. The utilitarian property of the dissipating channel is viewed as an approach
to manage accomplice and requesting of affiliations and delegates through which no
short of what one streams are spilling.
2.2 REVIEW OF LITERATURE
1. Mallen, B. (1973).did a study on Functional Spin-Off: A Key to Anticipating

Change in Distribution Structure, among a total of 150 samples from different
parts of Montreal, Canada. The objectives of the study were to analysis the
marketing channels literature has given considerable attention to the study of
channel structure. Early researchers discussed channel structure in terms of the
functions performed by channel members.
2. Lusch, R. F., & Brown, J. R. (1996): did a study on Interdependency,
Contracting, and Relational Behaviour in Marketing Channels, among a total
of 3225 firms from a mailing list of all U.S The objectives of the study were to
analysis ongoing channel relationships are coordinated in a behavioural sense
has been even more prominent, dealing with methods of channel governance,
including the impact of contracts, the development and application of interfere
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power, communication approaches, levels of control and conflict, and the
attainment of trust and commitment.
3. John, G., & Weitz, B. A. (1988) did a study on Forward Integration into
Distribution: An Empirical Test of Transaction Cost Analysis, The data
reported here are obtained from a sample of industrial firms with sales over
$50 million. The objectives of the study were to analyse the use of multiple
channels of distribution is now becoming the rule rather than the exception,
given the fragmentation of markets, advancements in technology, and
heightened inter brand competition, among other things. While multiple
channels potentially increase the firm’s penetration level and raise entry
barriers, inter brand competition and intra channel conflict may become major
problems, leading to lowered levels of support in the firm’s direct and indirect
channels. Such possibilities remain largely unexplored.
4. Dwyer, F. R., & Welsh, M. A. (1985).did a study on Environmental

Relationships of the Internal Political Economy of Marketing Channels,
among a total of 10 retailers industries. The study analyse the Though the
field of marketing, in general, has adopted a strategic perspective, one
particular area, distribution channels, has been relatively slow to embrace this
perspective. Besides research on the manipulation of power and influence
attempts, little attention has been given to the study of channel strategies. The
importance of marketing channel strategy decisions is highlighted by their
inherent long-term consequences and the constraints and opportunities that
they represent.
5. Frazier, G. L., & summers, J. O. (1986) did a study on Perceptions of
Interfere Power and Its Use within a Franchise Channels of distribution,
among a total of 435 dealers. The study, analyses can be viewed as social
systems comprising a set of interdependent organizations, which perform all
the activities functions, utilized to move a product and its title from
production to consumption
6. Dwyer, F. R., & Oh, S. (1988).did a study on Transaction Cost Perspective
on Vertical Contractual Structure and Inter channel Competitive Strategies,
among a total of 400 stores. The objectives of the study were to analysis the
purpose of our research is to compare the effects of inter organizational form
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on decision-making processes within the channel and the resulting
competitive posture of the system in the marketplace.
7. Coughlan, P., & Coghlan, D. (2002) did a study on Action research for
operations management, among a total of 120 sample. The study Analyse the
Managers responsible for developing and managing the distribution channels
that make products and services available to literally billions of customers
around the world face a more complex challenge than the previous generation
of channel managers. Not only do today's channel managers need to think
globally, but they must also act locally in terms of providing the appropriate
array of channels desired by heterogeneous markets all over the world.
8. Karray, S., & Zaccour, G. (2007) did a study on Effectiveness of coop

advertising programs in competitive distribution, among data has been
collected through structured questionnaire from 50 respondents. The study
Analyze the channels considered a cooperative advertising program as a cost
sharing mechanism of direct-mail promotional activities. They showed that
both channel members are better-off when implementing the cooperative
advertising program.
9. Frazier, G. L. (1999).did a study on Organizing and Managing Channels of

Distribution among a total of 145 samples. Tremendous strides have been
made in the understanding of how firms should organize and manage their
channels of distribution. Still, the researchers have barely touched the surface
of all the managerial issues that have been addressed. Furthermore, many
issues of managerial importance relating to the organization and management
of channels of distribution have received no attention in empirical research.
10. Gudonavičienė, R., & Alijošienė, S. (2008) did a study on The Specific
Features of Marketing Channel Design, among a total of 100 respondents.
The objectives of the study were to analysis the formation of the structure of
marketing channel. Decision about the selection of marketing channel require
large investments and efforts, but the effective distribution system always
brings some additional advantages for company in the competition.
11. Gaski, J. F. (1984) did a study on The Theory of Power and Conflict in
Channels of Distribution, among a total of 50 respondents. In general, the
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concept of distribution refers to where and how product and services are to be
offered for sale, all essential mechanism and logistical supports for the
transfer of goods and services as well as ownership of goods and services to
the customers.
12. Gross, U., Valle, C., & Diaz, M. M. (2006) did a study on Effectiveness of
distribution of multimicronutrient supplements in children and in women and
adolescent girls of childbearing age in Chiclayo, Peru, among a total of 150
sample. The study analyse the coverage of the distribution of
multimicronutrient supplements Effective, sustainable, large-scale
micronutrient supplementation programs require broad partnerships with
commitments of governmental and nongovernmental organizations,
communities.
13. Obaji, R. N. (2011) did a study on The Effects of Channels of Distribution
on Nigerian Product Sales, among a total of 300 respondents. The objectives
of the study were to determine whether the involvement of distribution
channels used by manufacturing companies improve sales of their products.
Many manufacturing companies have long looked upon distribution channels
as “customers” and rarely bothered to look beyond .Yet the primary purpose
of the distribution channel is to satisfy customer/end-user needs, and
intermediaries are conduits to effect this goals
2.3 STATEMENT OF THE PROBLEM
The study is mainly conducted to know the effectiveness of distribution

channels on programme of Coca-Cola products. Subscribers in Coke is due to
heavy competition in FMCG industry especially from PepsiCo and other local
brands in Bangalore city. This will help in getting the customer feedback,
preference and also helps to know market share of this particular product of
programme in Bangalore city.
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2.4 OBJECTIVES OF THE STUDY
 Factors influencing the purchase of coca cola by outlets.
 To know the satisfaction level of retailers towards
distribution.
 Find the relationship between the retailers satisfaction with
the distributer on the willingness to continue association with
distributers.
2.5 HYPOTHESIS
Null Hypotheses H0: There is a significant relationship between Factors influencing

and purchase of coca cola
Null Hypotheses H0: There is a significant relationship between satisfaction level of

retailers and distribution
2.6 RESEARCH METHODOLOGY
Research methodology is a systematic and speculative analysis of the techniques

applied to a field of study. It constitutes the speculative analysis of the body of
techniques and principles related with branch of knowledge.
Methodology adopted
Research design: The type of study used in this research is Descriptive study.
Descriptive study is a statistical study to identify patterns or trends in a situation.
Source of data collection:

The data has been collected from both primary and secondary methods have been used.
Primary data: It was collected by surveying the outlets
Secondary data: it was collected from,
 Company website, wiki
 Online journals
 Brochures
Sampling design:
Sample size: A sample size of 50 outlets were approached to collect the data.
Sampling techniques: The convenience sampling method is used to collect data from
outlets. A convenience sample is a type of non-probability sampling method where
the sample is taken from a group of people easy to contact or reach.
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 Sampling unit
The particular survey was directed at outlets who are selling the Coca-Cola products
in Bangalore city.
2.7 SCOPE OF THE STUDY

 This study covers the customers of Coca-Cola products in Bangalore
 This study to understand the effectiveness of distribution channels of
HCCBPL
 The environmental constraint of the study was constrained to the
Bangalore area.
2.8 LIMITATIONS OF THE STUDY
 This study was restricted to only Bangalore market

 The time duration for this study was 12 weeks only
 Some of the information given by the respondents may be biased
2.9 CHAPTER SCHEME

Chapter 1:
This chapter deals with the Marketing Channels, Channel Intermediaries and Their
Functions, Channel Functions Performed by Intermediaries, Marketing Channels for
Consumer Products, Channels for Consumer Products, Making Channel Strategy
Decisions, Factors Affecting Channel Choice, The Role of Retailing, Importance of
retailing in the Indian economy, Functions of Distribution Channels, Importance of
distribution channel, Defining Wholesaling and Logistics, Channels and Distribution
Decisions for Global Markets, Developing Global Marketing Channels, Channels and
Distribution Decisions for Services.
Chapter 2:
This chapter consists review of literature and research design, statement of the
problem, objective of the study, hypotheses, research methodology, scope of the study,
limitations of the study,
Chapter 3:
This chapter deals with the Industry profile, company profile. Accounts and finance
department, marketing and sales department, Production department, Administration
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office, Manufacturing process, Product and Competitors information, organizational
structure.
Chapter 4:
This chapter provides the results of statistical test such as frequency, anova tests,
correlations and regression test, followed by analysis and discussion with regard to the
effectiveness of distribution channel of coca cola.
Chapter-5:
This chapter give the summary of the findings, conclusions, and suggestions
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CHAPTER 3
ORGANISATIONAL
STRUCTURE
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3.1 INDUSTRY PROFILE
THE FMCG INDUSTRY IN INDIA:
Fast moving consumer goods (FMCG), also known as Consumer Packed goods (CPG)
are products that have a quick turnover and relatively low cost. Consumers generally
put less through into the purchase of FMCG than they do for other products.
The Indian FMCG industry Witnessed Significant changes through the 1990’s many
players had been facing severe problems on account of increased competition from
small and regional players from slow growth across its various products categories. As
a result, most of the companies were forced to revamp their products, marketing,
distribution and consumer services strategies to strengthen their positions in the market.
BEVERAGE INDUSTRY OVERVIEW
The food processing industry in India has a total turnover of around USD 65 billion
which includes value added products of around USD 20.6 billion. Coca cola, Pepsi, and
Nestle are the leading beverage brands that have been ruling the Indian beverage market
since past few decades. Among all the beverages, tea and coffee are manufactured as
well as exported heavily in the international markets succumbing to the individual
demands around the world. The beverage industry in India constitutes of around USD
230 million among the USD 65 billion food processing industry. The major sectors in
beverage industry in India are tea and coffee which are not only sold heavily in the
domestic market but are also exported to a range of leading overseas markets. Half of
the tea and coffee products are available in unpacked or loose form. Among the hot
beverages manufactured in India, tea is the most dominant beverage that is ruling both
the domestic and international market even today. The supply of tea and coffee is
insurmountable in the Indian beverage industry.
The taste factor in tea varies according to the taste of individuals in different countries
and the beverage companies in India manufacture the products in accordance with the
taste of the individuals. For example, the inhabitants in the southern parts of India prefer
dust tea whereas the inhabitants in the western part of India prefer loose tea. The
Southern India also prefers coffee a lot. The production capacity of the total packaged
coffee market is 19,600 tonnes which is approximately a USD 87 million market. The
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soft drink market such as carbonated beverages and juices constitutes around USD 1
billion producing 284 million crates per year.
In the peak season, the consumption capacity reaches 25 million creates per month and
during off season the same goes down to 15 million crates in a month. Pepsi and Coca
cola are the two leading brands in the Indian market. The mineral water market in India
is a USD 50 million industry and produces 65 million crates. Around 4.9 million crates
is usually consumed each month but it rises to 5.2 million crates in the peak season.
About Beverage Companies in India.
Natural product squeezes, squash and centres, & sauces or ketchups are doing the
refreshment publicize in India as far back as couple of years. Diverse deplete things,
prosperity refreshments, mix, and country alcohols have moreover been contributing
for the most part in the growing enthusiasm of drinks in India. The fundamental savour
associations India are moreover conveying diverse things specially tea and coffee to
widespread bazaars yearly. Tea and coffee have enlisted an incredible advancement in
the Indian refreshment publicize as these are maximum supported drinks bought
extravagantly everywhere in the earth. Amongst all fundamental savour associations
India, Coke has spoken to a booming improvement since its start. It includes about 60%
of the gassy relish fragment the Indian refreshment business. Alternative brand in drinks
is Nestle India Limited which includes 61.85% of total Nestle S.A. Switzerland. The
Nestle things are vastly conveyed to Russia isolated from offering in the nearby market.
List of some Top Beverage Businesses in India
 Ace, continental Exports.

 Amalgum, Enterprises.
 UB, Group.
 Vinbros, and Co.
 Indian, bears
 Mohan Makin brewery.
 Adluri, foods.
 Agarment, Corporation.
 Apple Valley, Groups.
 Carritt, Moran, & Co.
Page 22 of 94
 Cygnet, India.
 Karnataka Plantation Coffee.
 Lochan Tea.
 North Western Catcher. Tea.
 Tata Tea.
 Thunderbolt, Tea.
 Williamson Mager Groups.
 S.A.B. Miller.
 Coca Cola.
 PepsiCo.
 Dhunseris Tea.
 McDowell’s, & Company.
 Nestle.
3.2 COMPANY PROFILE
HISTORY OF COCA-COLA:
Coca-Cola the product that has given the world its best-known taste was born in Atlanta.
Georgia, on May 8, 1886. Coca-Cola Company is the world's leading manufacturer,
marketer And distributor of non-alcoholic beverage concentrates and syrups, used to
produce neatly 400 beverage brands. It sells beverage concentrates and syrups to
bottling and canning Operators distributors, fountain retailers and fountain wholesalers.
The company's beverage Concentrates syrups and not ready to drink powder products.
In addition to this it also Produces and markets sports drinks, tea and coffee. The coca
cola company began building its global network in the 1920s. Now operating is more
than 200 countries and producing Nearly 400 brands, the. Coca-Cola system has
successfully applied a simple formula on a Global scale, "Provide a moment of
refreshment for a small amount of money a billion times a day.”
The Coca-Cola Company and its network of bottlers comprise the most sophisticated
and Pervasive production and distribution system in the world. More pervasive
production and Distribution system in the world. More than anything, that system is
dedicated to people Working long and hard to sell the products manufactured by the
company. This unique World-wide system has made The Coca-Cola Company the
Page 23 of 94
World's premiere. Soft drink enterprise. From Boston to Beijing, from Montreal to
Moscow, Coca-Cola, more than any other consumer product, has brought pleasure to
thirsty consumers around the globe. For more than. 115 years, Coca-Cola has created a
special moment of pleasure for hundreds of millions of people every day. The company
aims at increasing share owner value over time. It accomplishes this by Working with
its business partners to deliver satisfaction and value to consumers through a
Worldwide system of superior brands and services, thus increasing brand equity on a
global basis Processes. Over the last 4 years, the water efficiency of company plant
operations has improved by 40%
As part of our replenishment policy HCCBPL’s water stewardship initiatives with local
community include:
 Rain water harvesting initiatives

 Restoration of traditional community water bodies
 Sustainable agriculture practices
WE WORK IN FOLLOWING AREAS OF INTERVENTION:
 Access to health and sanitation

 Access to safe drinking water
 Access to primary education
 Creating livelihood opportunities through vocational training and
 Empowerment through self Help groups
Page 24 of 94
Access to safe
drinking water
Access to health Creating livelihood

including IMPROVEMENT IN opportunities
Environmental
education QUALITY OF LIFE through vocational
training and SHG's
Access to Education
 HCCBPL has an extensive distribution system spanning more than a million

outlets operating with world class execution standards. The focus of the systems
in to develop strong consumer value while delivering preferred choice of
refreshment at an arm’s length of desire to the consumer.
HCCBPL’s product portfolio has an extensive range to choose

from:
 Sparkling beverages - Coca-Cola, Diet Coke, Thums Up, Sprite, Fanta, Limca,
Rim-Zim jeera, Kinley soda, Monster Schweppes Tonic Water
Page 25 of 94
 Still beverages - Maaza, minute maid pulpy orange, minute maid Nimbu fresh,
minute maid 100% juices (Apple, Grapes, orange, mixed fruit), Minute Maid
range of fruit flavoured drinks.
 Water – Kinley, bonaqua and smart water.
Over the years Hindustan Coca-Cola beverages pvt Ltd, has focused on building world
class operations based on principles of safety, profitability and solid governance to
claim sustained growth. As part of our journey of moving towards being a world class
company, we have strengthened our organization in terms of supply chain,
infrastructure, market execution, people, process, compliance, governance and route-
to-market. This approach has enabled us to build our portfolio through launching new
packs and brands, coupled with a competitive pricing strategy based on a balance of
value pricing and eliminating waste.
Mission
Enriching lives across the country by building a consumer driven, Customer focused
employee friendly, profitable, Sustainable and socially responsible business in India.
Vision:
To be the best sales and distribution company for consumer products in India
connecting people and their product of their choice
HCCBPL’s water stewardship initiatives are based on responsibility

to safely return to nature an amount of water equivalent to what we use in all our
beverages and their production and ensure continued support to water neutrality.
HCCBPL’s water management policy is based on 3-R Approach across its bottling
operations. Reduce-Reduce the quantity of water HCCBPL uses to manufacturer
beverages and become a water efficient user.
Recycle- reuse as much as possible and treat waste water in all our plants to
standards that support aquatic life prior to discharge.
Replenish- support replenishing activities and sustainable community water

programmers to balance water used in our finished beverages.
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Without our plants, emphasis is laid on water efficiency of the equipment and processes
during the design stage. In addition the plant operations implement water treatment
filters backwash recovery bottle-washer water recovery and waste water recovery
through ultra- filter and RO
Zonal head
HR manager
HR/executive
/Team manager
3.3 DEPARTMENT PROFILE

3.3.1 Finance department
The finance department of a business takes responsibility for organising

tie; financial and accounting affairs including the preparation and presentation of
appropriate accounts, and the provision of financial information for managers. Finance
is regarded as the life blood of the business. In modern money oriented company;
Finance is one of the basis foundations of all kinds of economic activities. It is the
master key, which provides access to the entire source for being employed in
manufacturing and merchandising activities. Finance plays a key role in all the activities
of business. It may be defined as the service of money. It deals with the principles and
of administrating it by those who control it.
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The functions of accounts department have been divided into;
All accounting activities in purchase and sales
Accounting related to purchase and sales is carried out by the accountant. They classify,
calculations late, summarize and report to various interested groups.
Inventory/Stock Management
Accounts relating to raw materials, packing materials and finished goods are
maintained by the accountants.
Accounting of cash and Bank
Cash and cash related accounts are verified and calculated by the accountants. Also
bank Statements are prepared by the accountants.
Accounting of Debtors and Creditors
Receipts and Payment relating to debtors and creditors are calculated by accountants.
Accounting of debtors include calculation of sundry debtors, provision for doubtful
debts, bad debts etc. accounting of creditors include credit payment period, creditors
amount etc.
Documentation/Filing
Maintenance of various documents in files is done. They maintain various files like
sales purchase, stock, debtors, journal, salary and bonus etc.
Sources of funds
Internal sources
 Share capital
 Reserves and Surplus
External source
 Secured loans
 Unsecured loans
Application of funds
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 Fixed assets
 Investment
 Current assets & Loans and advances
3.3.2 Financial accounts
This section is responsible for dealings with all types of cash payments and receipts.
This includes payment for raw materials purchase, cash payments, operation and
reconciliation of bank accounts payment to the government in the form of taxes and
levies, payment of PF, deduction from salary and payment of loan outstanding and
insurance premium of employees travel allowance medical reimbursement etc. It also
deals with cash receipts in the case of scrap sales and any other cash receipt.
Cost accounts
This deals with forecasting, budgeting, analysing and reporting the income and
expenditure of the company. The budget for expenditure is prepared using standard
costing principles and it is compared with the actual expenditure. Any variation from
the budget is analysed to find the exact reason and it is reported to the top management
Wages and salaries
This section is responsible for the payment of wages and salaries to the employees of
the company.
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Zonal
Head
Finance
Manager
Financial
Executive/Team
leader
FIG: 3
3.3.3 Marketing and Sales Department:
Basically I was into sales department and the first step is to study the market by going
along with pre-seller and analysing the market, The task which was given to me is to
lean about stock going in and going out totally studied about inventory towards supply
demand management of product and the stock keeping unit by this I can analyse which
type of beverages are fast and slow moving and 2 key points are merchandizing and
first in first out (FIFO) to remember in sales
Technology:
All the Latest technology is used in the sales process, like even the pre-sales uses a Tab
to take the orders of the required products of the company and even the top level
managers can really track on whether they really work in the field and once the order
is punched the order summary will be sent to the Philippines, and all the higher officials
can view the sales in that particular area in any part of the country. This is How
Technology help them in sales.
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Pre seller:
He is the lower most employee in Hindustan Coca Cola Beverages Pvt Ltd and in other
word he is called as a sales man and he will receive a list of PJP Product s that is
(permanent Journey plan) and approx. their monthly target will be 3800 cases /Month
and overall around 120-150 outlets is under one pre seller, under one particular area.
Different Packs, Litres and Schemes were given to the pre seller were sales increases.
Strategies:
Company Provide coolers for free and they have given required sales to the company
Based on the size of the cooler they requested, the few various coolers are (9caser, 12
Caser 15caser and 30 caser i.e. double door fridge and based on the size of the cooler
the Sales has to be given to the company 40 cases/month.
3.4 ORGANIZATION STRUCTURE OF COCA-COLA IN INDIA
Chief Executive Office
Vice President Supply Chain
Chief Finance Officer
Human Resource Director
Vice President BSG
Regional Vice President (North)
Regional Vice President (Central)
Page 31 of 94
3.5 ORGANIZATION STRUCTURE OF THE SALES
DEPARTMENT IN HCCBPL:
AGM/ACD
Plant Human General

Route to Finance
Manager Resource Sales
Market Manager
Manager Manager
Area Channel Area

Sales Manager Capability
Manager Manager
Sales Sales
Marketing
Executive Trainers
Market Key
Developers Accounts
Distribution
and sales
man
Page 32 of 94
3.6 Production department:
Introduction:
The manufacturing plant which I visited is in the Bidadi and it's the old coca cola plant
and there are around three manufacturing plant of coca cola in Bangalore. This Bidadi
plant is around 60km from Bangalore city. The maximum production happens for the
entire Bangalore city is from this plant. There is two other small plants were they are
experiencing it with new equipment’s which is fully automatically where there is no
need of human resource in the mere future. Around 1000 employees work in the factory
and they are into various department like quality, technical and operators and the
labourers .There is an Administration department in the factory where there is a team
of Human resource executive’s to manage the employees in the factory like training
and development, Computation of over time, performance appraisal of the employees.
This is the brief introduction of the factory Management.
Hospitality:
In the Manufacturing unit the way they greet and they really make us comfortable by
the very first impression of the factory and they show us the video of how they should
carry themselves when they are inside the plant premises.
Manufacturing Plant Bidadi
Sales and Distribution
Distribution Outlets
Outlets
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Safety and Few Instructions:
 Wear safety shoes

 Do not smoke
 Avoid outside food.
 Do not Spit
 Pep compulsory
 Do not touch the machine.
 Beware of moving vehicles which is 15kmhr
 Photography Prohibited
 Be alert with the Emergency Siren.
 Visitors badge will be given to the outsider entering into premises with the
valid Permissions
3.7 Administration office:
The very first department they over-look all other departments and check all
departments are functioning and follow the schedule.
Page 34 of 94
Awards:
Lyod register from 2008-2017
3.8 Manufacturing process:
In this manufacturing process for the juice variants they get the concentred ready syrup
from two main suppliers of fresh i.e. Jain farm fresh which is in Mumbai and the other
one is in mother diary which is situated in Bengaluru. They prefer only thotapuri
mangos for the juice variants especially maaza.
6+1 Lines
4 Lines for 2 Lines are for

Carbonated Drink Juice variants
Page 35 of 94
1 line for BIB (Bag
I Box)
Glass Bottle:
They use fruit hot fill for the juice variants like maaza and minute maid and they should
be kept in a temperature i.e. 75-80 degree. And for the carbonated drinks they have this
Choco mixed drink Such as Coca Cola and Thumps and there is no temp should be
maintained in the carbonated drink process. In this two lines one is used for fruits
variants and other one is used for the carbonated drink.
Water Resource:
They use fresh water from Cauvery River and they use chlorine to remove the algae
which would form in the future and the then the filtration process is done that is 0,1,2,3
microns they use this water to clean the glass bottles and they rinse it four times.
Glass bottle cleaning process:
Rinse to Wash it with Rinse to Final wash

make it wet chlorine remove the with hot
chlorine water
Page 36 of 94
Process After wash:
 The Bottles were rechecked manually by an employee to find whether there is

any
Breakage of Bottle necks during the washing process.
 The Bottles were sent into the inspection window and this inspection window
has 3
Cameras and were the automatic machines checks again for a breakage if the
bottle.
 The bottles are sent into two different direction i.e. Select and Reject the Bottle
 Selected bottles are sent for the pre heating to balance it with the temperature.
 Rejected bottles were sent for recycling into various industries and sell them as
scrap and they even reuse it like printing Coca Cola T shirts for the Employees.
 After pre-Heating the next step is sprinkling water.
 Add Carbonated 4-10 Degree and for juice 70-80 degree and they do the sugar
process for carbonated and ready concentrated mix to the juice variant’s.
 The limit will be set and the process will stop automatically after that particular
production is done.
Production Capacity:
 155 Bottles per minute is produced for juice variants i.e. maaza and Minute
maid
The production is low because it's the old unit and the equipment has less
capacity for
The juice Bottling.
 600 Bottles per minutes produced for the carbonated variants like coke, sprite,
Fanta
Thumps up etc. The Production per minute is more than the juice production
because
It’s the new equipment which has been purchased recently.
 35000 cases Production in 48hours approximately.
 Around 100000 case during the seasons.
 To Produce 1 litre of bottle they use around 1.6 litres of water for the entire
process.
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Various Labs:
They send it to various external lab to ensure the Quality again i.e. Vimta and Efrag on
Government order.
Various Equipment’s:
 They use Sidel a Japanese company equipment which is fully automatic,

which is used for Manufacturing process.
 They Use Presto For all the quality checks of the concentrated syrups and the
Measurements.
Page 38 of 94
Food and Canteen:
The food over there in the manufacturing plant was so delicious and it’s pure vegetarian
and the best part is right from the top level managers to the bottom level employees
who is working in the factory have the same food and on the same table and I guess this
a great success of the brand Coca Cola. Even I Got a Chance to have that delicious meal
from the factory and this is the hospitality quality they maintain and they respect and
greet each and every one with lots of love and happiness. I guess this is the success of
Coca Cola
3.9 Products
 Diet C0ke
 Thumbs Up
 Sprite
 Fanta
 Limca
 Kinley soda
 Schweppes
 Tonic Water
 Maaza
 Minute Maid Pulpy Orange
 Kinley 20ltr
 Rim zim jeer
 Coca cola
Above said products will get manufactured in 19 Manufacturing Plants in

India.
The Plants are situated in the below said locations.
1) Jammu
2) Dasna
3) Varanasi
4) Siliguri
5) Patna
6) Bhopal
Page 39 of 94
7) Goblej
8) Bhubaneshwar
9) Thane
10) Pirangut
11) Ameenpur
12) Moula Ali
13) Guntur
14) Hospet
15) Goa
16) Bidadi
17) Aranya
18) Nemam
19) Chittoor
3.10 COMPETITORS INFORMATION

PEPSI (Major Competitor)
Pepsi is a carbonated soft drink produced and manufactured by PepsiCo. Originally
created and developed in 1893 by Caleb Bradham and introduced as Brad's Drink, it
was renamed as Pepsi-Cola on August 28, 1898, and then as Pepsi in 1961.
Coca cola products Competitors products
Coca cola Pepsi
Sprite 7 Up
Fanta Mirinda
Maaza Slice
Limca Nimbooz
Kinley water Bisleri and Aquafina
Kinley soda Lehar soda

Other competitors
Red bull
Gatorade
Page 40 of 94
Dr Pepper (Dr Pepper Snapple)
3.11 SWOT ANALYSIS

Strengths:
• Coca-Cola’s presence all over the world.
• Brand awareness.
• Strong Marketing and Advertising Strategies.
• Coca-Cola has largest market share in beverage industry in the world. It
has the biggest beverage distribution channel
Weakness:
• Negative Publicity
• Decline in cash flow
• Significant focus on carbonated drinks
Opportunities:
• Increase in demand for bottled water.

• Developing interest for sustenance and drink items.
• Developing chilly savors utilization creating markets.
Threats:
• Negative health effect

• More competition from PepsiCo and other local brands.
Page 41 of 94
CHAPTER 4
Results, Analysis and Discussions
Page 42 of 94
4.1. Frequency test
4.1.1 Frequency test for type of outlets
Table No:4.1.1 TYPE OF OUTLET

Frequency Percent
Eat and drink 7 14.0
Grocery 30 60.0
Convenience 13 26.0
Total 50 100.0
Fig: 4.1.1 Types of outlets

Analysis: From the above graph, we came to know that 60% of the outlets will come
under Grocery, 26% of them under Convenience, 14% of them under Eat and Drink
Hence, more than half of the outlets were grocery stores
Page 43 of 94
4.1.2 Frequency test for selling coca cola
Table No: 4.1.2. Frequency of selling coca cola
Frequency Percent
yes 50 100.0
Fig: 4.1.2 Frequency of selling coca cola
Analysis: All the outlets were selling coca cola products

Hence, it proves that all the outlet that I visited are selling coca cola products.
Page 44 of 94
4.1.3 Frequency test for the time period for which coca cola is being sold
Table No: 4.1.3.The time period for which coca cola is being sold
Frequency Percent
4-6 years 15 30.0

more than 6 years 35 70.0
Total 50 100.0
Fig: 4.1.3.The time period for which coca cola is being sold
Analysis: From sample size of 50 outlets, 30% of them are selling coca cola products
for 4-6 years, 70% of them are selling Coca cola products for more than 6 years.
Hence, it is clear that more than 65% of the outlets are selling coca cola products from
more than 6 years
Page 45 of 94
4.1.4 Frequency test for place of purchase
Table No: 4.1.4.Place of purchase
Frequency Percent
Om Shakti enterprises 24 48.0
Other distributors 26 52.0
Total 50 100.0
Fig: 4.1.4. Place of purchase
Analysis: From the table and graph, we can say that out of 50 outlets 24 of them are
purchasing products from Om Shakti enterprises and 26 of them are purchasing from
other distributers.
Hence, it concludes 50% are purchasing from Om Shakti enterprises.
Page 46 of 94
4.1.5 Frequency test for products of coca cola being sold
Table No: 4.1.5. Products of Coca Cola being sold
Particulars Frequency Percent

Coca Cola 46 92%
Thumbs up 47 94%
Fanta 45 90%
Sprite 50 100%
Limca 40 80%
Rim Zim jeera 25 50%
Maaza 44 88%
minute made 40 80%
Kinley water 45 90%
Kinley soda 35 70%
60
50
50 46 47 45 45
44
40 40
40 35
30 25
20
10
0 Series1
Coca Cola
Thumbs up Fant Sprite Limca
Rim Zim jeera
Maaza
minute made
Kinley water
Kinley soda
Fig: 4.1.5. Products of Coca Cola being sold
Analysis: From the above table and graph we can say that all the outlets are selling
almost all the products of Coca Cola but Sprite is selling in all the outlets and Rim Zim
jeera is selling in only half of the outlets.
Hence, it is clear that Rim Zim jeera is selling in only 50% of the outlets compared to
other products which are selling in more than 50% or in almost all the outlets.
Page 47 of 94
4.1.6 Frequency test for quality sold
Table No: 4.1.6. Quantity sold
Frequency Percent
200-300 ml RGB 35 70.0
250 ml pet bottles 8 16.0
750 ml pet bottles 7 14.0

Total 50 100.0
Fig: 4.1.6. Quantity sold
Analysis: From the above table and graph we can say that all the respondents are
purchasing almost all quantity products sold by coca cola.
Hence, almost all the outlets are purchasing all quantity of products.
Page 48 of 94
4.1.7 Frequency test for value purchased
Table No: 4.1.7. Value purchased
Frequency Percent
200-300 cases 9 18.0

300-400 cases 16 32.0
Valid 400-500 cases 24 48.0
Above 500 cases 1 2.0
Total 50 100.0
Fig: 4.1.7. Value purchased

Analysis: From the above table and graph it is clear that 48% of the outlets are
purchasing 400-500 cases per year. 32% of them 300-400 cases, 18% of them 200-300
cases, and 2% of them are purchasing above 500 cases.
Hence, it shows that more than 40% of the outlets visited are purchasing 400-500 cases
per year.
Page 49 of 94
4.1.8 Frequency test for payment type
Table No: 4.1.8. Payment type
Frequency Percent
Cash and Carry 38 76.0
Credit 12 24.0
Total 50 100.0
Fig: 4.1.8. Payment type
Analysis: out of 50 outlets 38(76%) of them are using cash and carry as their payment
method and remaining 12(24%) of them are using credit as their payment method.
Hence, it shows majority of the outlets pay the cash.
Page 50 of 94
4.1.9 Frequency test for credit period
Table No.: 4.1.9. Credit period
Frequency Percent
0-3 days 37 74.0

4-7 days 13 26.0
Total 50 100.0
Fig: 4.1.9. Credit period

Analysis: Out of 12 outlets who are using credit basis to payment, 8 of them want 0-3
days, 4 of them want 4-7 days for the payment.
Hence, the credit based outlets are willing to pay within 7 days
Page 51 of 94
4.1.10 Frequency test for no of sales man visit per week
Table No: 4.1.10. No of sales man visit per week
Frequency Percent
One time 29 58.0
Two time 21 42.0
Total 50 100.0
Fig: 4.1.10. No of sales man visit per week
Analysis: The table and graph shows that, to the 58% outlets, wants the sales person to
in week is visit one time and to 42% outlets sales person is visit for two times in a week.
Hence, the outlets want at least one visit per week and maximum of two week
Page 52 of 94
4.1.11 Frequency test for influence purchases products
Table No: 4.1.11. Promotional activities influence purchase

Frequency Percent
Disagree 6 12.0
Neither Agree or disagree 35 70.0
Agree 9 18.0
Total 50 100.0
Fig: 4.1.11. Promotional activities influence purchase
Analysis: 35% of the outlets neither agree nor disagree that promotional activities
influence purchase
Page 53 of 94
Table No: 4.1.12. Quality of product influence purchase
Frequency Percent
Agree 38 76.0
Total 50 100.0
Fig: 4.1.12. Quality of product influence purchase
Analysis: The above table and graph, shows that, 76% of the outlets feel that quality of
the product influence purchase.
Hence, majority of the outlets feel that quality of the product influence purchase.
Page 54 of 94
Table No: 4.1.13. Price margins influence purchase
Frequency Percent
Disagree 2 4.0
Valid
Agree 17 34.0
Total 50 100.0
Fig: 4.1.13. Price margins influence purchase
Analysis: The above table and graph, shows that, 62% of the outlets neither or disagree
that price margin influence purchase.
Hence, majority of the outlets feel that price margin influence purchase
Page 55 of 94
Table No: 4.1.14. Company policy influence purchase
Frequency Percent
Disagree 6 12.0
Agree 24 48.0
Strongly Agree 2 4.0
Total 50 100.0
Fig: 4.1.14. Company policy influence purchase

Analysis: The above table and graph, shows that, 48% of the outlets agreed that
company policy influence purchase.
Page 56 of 94
Table No: 4.1.15. Sales service influence purchase
Frequency Percent
Disagree 1 2.0
Agree 27 54.0
Strongly Agree 7 14.0
Total 50 100.0
Fig: 4.1.15. Sales service influence purchase

Analysis: The above table and graph shows that, 54% of the outlets agreed that sales
service influence purchase.
Hence majority of the outlets agreed that sales service influence purchase.
Page 57 of 94
4.1.12 Frequency test for no of visit by distributer
Table No: 4.1.16. Expectation of no of visit by distributer
Frequency Percent
Once 9 18.0
Alternative days 3 6.0
Daily 1 2.0
In a week 37 74.0
Total 50 100.0
Fig: 4.1.16. . Expectation of no of visit by distributer

Analysis: From table and graph it shows that, to the 74% outlets distributer vehicle to
visit in a week and to 18% outlets, distributer vehicle to visit once and 6% outlets
distributer vehicle to visit Alternative days and 2% outlets, distributer vehicle to visit
daily.
Hence it is clear that distributer vehicle is visiting the outlets for in a week.
Page 58 of 94
4.1.13 Frequency test for time taken to delivery coca cola after the order.
Table No: 4.1.17. Time taken to delivery Coca Cola after the order
Frequency Percent
6-12 Hours 43 86.0

Valid 1-2 Days 7 14.0
Total 50 100.0
Fig: 4.1.17. Time taken to delivery Coca Cola after the order
Analysis: The above table and graph it shows that, it takes 6-12 hours (86%, i.e. 46
outlets) for delivery of coca cola product and the remaining takes 1-2 days (14%, 4
outlets) for delivery of coca cola product.
Hence, it is clear that the delivery of coca cola products is fast and efficient for almost
all the outlets.
Page 59 of 94
4.1.18 Frequency test for promotional materials provided by the company
Table No: 4.1.18. What are the promotional materials provided by the company
Particular Frequency Percent

Cooler 48 98
Banner 15 30
Poster 15 30
Wall painting 4 8
name board 13 26
pet-rock 2 4
umbrella 2 4
ROP 0 0
FREQUENCY
60
50
48
40
30
20
10 15 15 13
4 2 2 0
0
Fig: 18. What are the promotional materials provided by the company
Analysis: From the above table and graph, it is clear that almost all the outlets are
provided with cooler and some of them are provided with banners and posters also as
the promotional materials.
Hence, it is clear that every outlet needs a cooler to be installed as a promotional

materials, and also they said that they need some more promotional materials like name
board, posters, banners
Page 60 of 94
4.1.19 Frequency test for willingness to continue association with coca cola
Table No: 4.1.19. Willingness to continue association with Coca Cola
Frequency Percent
Agree 14 28.0
Highly agree 36 72.0
Total 50 100.0
Fig: 4.1.19. Willingness to continue association with Coca Cola
Analysis: out of 50 outlets, 36(72%) of them are highly agreed to continue the
association with coca cola and remaining 14(28%) of them agreed to continue
association with coca cola.
Hence, it shows that all the 50 outlets agreed to continue the association with coca cola.
Page 61 of 94
4.2 ANOVA TEST
4.2.1 Anova test to find out difference of means of longevity of sales of coca cola with
their service policy service of coca cola.
Objective: To find out difference of means of longevity of sale of coca cola with their
service policy of the coca cola.
Null Hypothesis: H0 There is no difference between means of longevity of sales of

coca cola with their service policy of the coca cola.
Alternative Hypothesis: H1 There is a difference between means of longevity of sales

of coca cola with their service policy of the coca cola
Table No: 4.2.1 difference of means of longevity of sales of coca cola

with their service of coca cola.
ANOVA
Sum of df Mean F Sig.
Squares Square
Between 2.215 2 1.107 6.281 .004
Groups
Within Groups 8.285 47 .176
Total 10.500 49
Interpretation
One way Anova test was conducted to compare whether there is a statistical difference
of means of longevity of sales of coca cola with their service policy of the company.
The test result shows that
F= 6.281, P value=0.004
Since P value is < 0.05, therefore, H1: is accepted.
Hence, there is a difference between means of longevity of sales of coca cola with their
service policy of the coca cola
Page 62 of 94
their margin of the company policy.
margin of the company.

coca cola with their margin of the company.

of coca cola with their margin of the company.

with their margin of the company
ANOVA

Squares Square
Between 2.053 2 1.026 5.710 .006
Groups
Total 10.500 49
Interpretation
One way Anova test was conducted to compare whether there is a statistical difference
of means of longevity of sales of coca cola with their margin of the company

F= 5.710, P value=0.006
Since P value is < 0.05, therefore, H1: is accepted.
Page 63 of 94
their credit policy.
credit policy

coca cola with their credit policy

of coca cola with their credit policy

with their credit policy
ANOVA

Squares Square
Between .857 3 .286 1.363 .266
Groups
Total 10.500 49
Interpretation
One way Anova test was conducted to compare whether there is no statistical difference
of means of longevity of sales of coca cola with their credit policy.
F= 1.363, P value=0.266
Since P value is < 0.05, therefore, H1: is rejected.

credit policy
Page 64 of 94
their damage policy.
damage policy.

coca cola with their damage policy.

of coca cola with their damage policy.

with their damage policy
ANOVA

Squares Square
Between .236 2 .118 .540 .587
Groups
Total 10.500 49
Interpretation
of means of longevity of sales of coca cola with their damage policy.

F= 0.540, P value=0.587
damage policy
Page 65 of 94
their discount policy.
discount policy.

coca cola with their discount policy.

of coca cola with their discount policy.

with their discount policy
ANOVA

Squares Square
Between .519 3 .173 .798 .501
Groups
Total 10.500 49
Interpretation
One way Anova test was conducted to compare whether there is no statistical
difference of means of longevity of sales of coca cola with their discount policy.

F= 0.798, P value=0.501
discount policy
Page 66 of 94
their satisfaction towards speed of delivery.
satisfaction towards speed of delivery.

coca cola with their satisfaction towards speed of delivery.

of coca cola with their satisfaction towards speed of delivery.

with their satisfaction towards speed of delivery
ANOVA

Squares Square
Between .257 2 .129 .590 .558
Groups
Total 10.500 49
Interpretation
of means of longevity of sales of coca cola with their satisfaction towards speed of
delivery.

F= 0.590, P value=0.558
Page 67 of 94
their satisfaction towards payment method.
satisfaction towards payment method.

coca cola with their satisfaction towards payment method.

of coca cola with their satisfaction towards payment method.

with their satisfaction towards payment method
ANOVA

Squares Square
Between .466 2 .233 1.090 .344
Groups
Total 10.500 49
Interpretation
of means of longevity of sales of coca cola with their satisfaction towards payment
method.

F= 1.090, P value=0.344
satisfaction towards speed of delivery.
Page 68 of 94
their satisfaction towards promotion.
satisfaction towards promotion.

coca cola with their satisfaction towards promotion.

of coca cola with their satisfaction towards promotion.

with their satisfaction towards promotion
ANOVA

Squares Square
Between .210 2 .105 .479 .622
Groups
Total 10.500 49
Interpretation
of means of longevity of sales of coca cola with their satisfaction towards promotion.

F= 0.479, P value=0.622
satisfaction towards promotion.
Page 69 of 94
their satisfaction towards schemes.
satisfaction towards schemes.

coca cola with their satisfaction towards schemes.

of coca cola with their satisfaction towards schemes.

with their satisfaction towards schemes
ANOVA

Squares Square
Between .441 3 .147 .673 .573
Groups
Total 10.500 49
Interpretation
of means of longevity of sales of coca cola with their satisfaction towards schemes.

F= 0.673, P value=0.573
satisfaction towards schemes.
Page 70 of 94
their satisfaction towards price.
satisfaction towards price.

coca cola with their satisfaction towards price.

of coca cola with their satisfaction towards price.

with their satisfaction towards price
ANOVA

Squares Square
Between .275 3 .092 .412 .745
Groups
Total 10.500 49
Interpretation
of means of longevity of sales of coca cola with their satisfaction towards price.

F= 0.412, P value=0.745
satisfaction towards price.
Page 71 of 94
their satisfaction towards behaviour of market growth representative.
satisfaction towards behaviour of market growth representative.

coca cola with their satisfaction towards behaviour of market growth representative.

of coca cola with their satisfaction towards behaviour of market growth representative.

with their satisfaction towards behaviour of market growth
representative.
ANOVA

Squares Square
Between .290 2 .145 .668 .518
Groups
Total 10.500 49
Interpretation
of means of longevity of sales of coca cola with their satisfaction towards behaviour of
market growth representative.

F= 0.668, P value=0.518
satisfaction towards behaviour of market growth representative
Page 72 of 94
their satisfaction towards behaviour of delivery boys.
satisfaction towards behaviour of delivery boys.

coca cola with their satisfaction towards behaviour of delivery boys.

of coca cola with their satisfaction towards behaviour of delivery boys.

with their satisfaction towards behaviour of delivery boys
ANOVA

Squares Square
Between .415 2 .208 .968 .387
Groups
Total 10.500 49
Interpretation
of means of longevity of sales of coca cola with their satisfaction towards behaviour of
delivery boys.

F= 0.968, P value=0.387
There is a difference between means of longevity of sales of coca cola with their
satisfaction towards behaviour of delivery boys.
Page 73 of 94
their willingness to continue association with coca cola.
willingness to continue association with coca cola.

coca cola with their willingness to continue association with coca cola.

of coca cola with their willingness to continue association with coca cola.

with their willingness to continue association with coca cola
ANOVA

Squares Square
Between .143 1 .143 .662 .420
Groups
Total 10.500 49
Interpretation
of means of longevity of sales of coca cola with their willingness to continue association
with coca cola.

F= 0.662, P value=0.420
Since P value is < 0.05, therefore, H1: is rejected
Page 74 of 94
4.3 Correlation test
4.3.1 Correlation test to find out examine the relationship between satisfaction towards
payment method and willingness to continue association with coca cola.
Objective: To examine the relationship between satisfaction towards payment method

and willingness to continue association with coca cola.
Null Hypothesis: H0 There is no significant relationship between satisfactions towards
Alternative Hypothesis: H1 There is a significant relationship between satisfactions

towards payment method and willingness to continue association with coca cola.
Table No: 4.3.1 examine the relationship between satisfaction

towards payment method and willingness to continue association
with coca cola.
CORRELATION
Satisfaction
towards
payment
method
Pearson 310*
willingness to continue association with coca Correlation
cola Sig. (2-tailed) .028
N 50
Interpretation
The correlation between satisfaction towards payment method and willingness to
continue association with coca cola is r= 0.310 and significant values is 0.028. This
indicates that and satisfaction towards payment method and willingness to continue
association with coca cola are not independent to each other.
Results says that reject null hypothesis and accept alternative hypothesis, it means there
is a significance relationship between satisfaction towards payment method and
willingness to continue association with coca cola, Here the value of r is 0.310 so it is
considered to be a positive correlation.
Hence, there is a significant positive weak relationship between satisfactions towards

Page 75 of 94
schemes and willingness to continue association with coca cola.
Objective: To examine the relationship between satisfaction towards schemes and


Table No: 4.3.2 Examine the relationship between satisfaction

towards schemes and willingness to continue association with coca
cola.
CORRELATION
Satisfaction
towards
Schemes
Pearson .343*
willingness to continue association with Correlation
coca cola Sig. (2-tailed) .015
N 50
Interpretation
The correlation between satisfaction schemes and willingness to continue association
with coca cola is r= 0.343 and significant values is 0.015. This indicates that satisfaction
towards Schemes and willingness to continue association with coca cola are not
independent to each other.
is a significance relationship between satisfaction towards schemes and willingness to
continue association with coca cola,
Here the value of r is 0.343 so it is considered to be a positive correlation. Hence, there
is a significant positive weak relationship between satisfactions schemes and
Page 76 of 94
price and willingness to continue association with coca cola.
Objective: To examine the relationship between satisfaction towards price and



towards price and willingness to continue association with coca cola.
CORRELATION
Satisfaction
towards price
Pearson Correlation 474**

Willingness to continue association with coca
Sig. (2-tailed) .001
cola
N 50
Interpretation
The correlation between satisfaction towards price and willingness to continue
association with coca cola is r= 0.474 and significant values is 0.001. This indicates
that satisfaction towards price and willingness to continue association with coca cola
are not independent to each other.
is a significance relationship between satisfaction towards price and willingness to
continue association with coca cola, Here the value of r is 0.474 so it is considered to
be a positive correlation. Hence, there is a significant positive weak relationship
between satisfactions price and willingness to continue association with coca cola.
Page 77 of 94
speed of delivery and willingness to continue association with coca cola.
Objective: To examine the relationship between satisfaction towards speed of delivery

speed of delivery and willingness to continue association with coca cola.

towards speed of delivery and willingness to continue association with coca cola.

towards speed of delivery and willingness to continue association
with coca cola.
CORRELATION
Satisfaction
towards
Speed of
delivery
Pearson .140
Willingness to continue association with Correlation
N 50
Interpretation
The correlation between satisfaction towards speed of delivery and willingness to
continue association with coca cola is r= 0.140 and significant values is 0.332. This
indicates that satisfaction towards speed of delivery and willingness to continue
Results says that accept null hypothesis and reject alternative hypothesis, it means there
is a no significance relationship between satisfaction towards speed of delivery and
willingness to continue association with coca cola,
Hence, there is a significant positive moderate relationship between satisfactions
towards speed of delivery and willingness to continue association with coca cola.
Page 78 of 94
promotion and willingness to continue association with coca cola.
Objective: To examine the relationship between satisfaction towards promotion and

promotion and willingness to continue association with coca cola.

towards promotion and willingness to continue association with coca cola.

towards promotion and willingness to continue association with coca
cola.
CORRELATION
Satisfaction
towards
Promotion
Pearson .159
N 50
Interpretation
The correlation between satisfaction towards promotion and willingness to continue
association with coca cola is r= 0.159 and significant values is 0.270.This indicates that
satisfaction towards promotion and willingness to continue association with coca cola
are not independent to each other.
is a no significance relationship between satisfaction towards promotion and
willingness to continue association with coca cola,
towards promotion and willingness to continue association with coca cola.
Page 79 of 94
behaviour of delivery boys and willingness to continue association with coca cola.
Objective: To examine the relationship between satisfaction towards behaviour of

delivery boys and willingness to continue association with coca cola.


towards behaviour of delivery boys and willingness to continue
CORRELATION
Satisfaction
towards
behavior of
delivery boys
Pearson Correlation .038

Willingness to continue association with
N 50
Interpretation
The correlation between satisfaction towards behavior of delivery boys and willingness
to continue association with coca cola is r= 0.038 and significant values is 0.795.This
indicates that satisfaction towards behavior of delivery boys and willingness to continue
is a no significance relationship between satisfaction towards behavior delivery boys
Page 80 of 94
4.3.7 Correlation test to find out examine the relationship between credit policy and
Objective: To examine the relationship between credit policy and willingness to

continue association with coca cola.
Null Hypothesis: H0 There is no significant relationship between credit policy and
Alternative Hypothesis: H1 There is a significant relationship credit policy and

Table No: 4.3.7 Examine the relationship between credit policy and
CORRELATION
Credit
policy
Pearson .033
Willingness to continue association Correlation
with coca cola Sig. (2-tailed) .820
N 50
Interpretation
The correlation between credit policy and willingness to continue association with coca
cola is r= 0.033 and significant values is 0.820.This indicates that credit policy and
willingness to continue association with coca cola are not independent to each other.
is a no significance relationship between willingness to continue association with coca
cola and credit policy.
Hence, there is a significant positive moderate relationship credit policy and
Page 81 of 94
4.3.8 Correlation test to find out examine the relationship between damage policy and
Objective: To examine the relationship between damage policy and willingness to

Null Hypothesis: H0 There is no significant relationship between damage policy and
Alternative Hypothesis: H1 There is a significant relationship damage policy and

Table No: 4.3.8 Examine the relationship between damage policy and
CORRELATION
Damage
policy
Pearson -.056
N 50
Interpretation
The correlation between damage policy and willingness to continue association with
coca cola is r= 0.056 and significant values is 0.700.This indicates that damage policy
and willingness to continue association with coca cola are not independent to each
other.
is a no significance relationship between damage policy and willingness to continue
Hence, there is a significant positive moderate relationship damage policy and
Page 82 of 94
4.4 Regression
4.4.1 Regression test to find out the influence of independent variable satisfaction
towards price, service policy and damage policy.
Objective: To find out the influence of independent variable satisfaction towards price,
service policy and damage policy.
Table No: 4.4.1 Mean descriptive statistics of the variable
Mean Std. Deviation N
Willingness to continue association with Coca 4.7200 .45356 50

Cola
Satisfaction towards Price 3.3400 .59281 50
Service policy 4.1800 .74751 50
Damage policy 3.5200 .57994 50
Interpretation:
Mean is the highest for Willingness to continue association with Coca Cola and the
mean is the least for satisfaction towards price. The standard deviation for Service
policy is the highest and the least for Willingness to continue association with Coca
Cola.
Table No: 4.4.2 Anova test
Model Sum of df Mean F Sig.

Squares Square
Regression 2.886 3 .962 6.151 .001
1 Residual 7.194 46 .156
Total 10.080 49
Interpretation
Thus, satisfaction towards price, service policy and damage policy has a significant
relationship with willingness to continue association with Coca Cola. The P value is
0.001. Which is less than 0.05, Results says that H0 is rejected and H1 is accepted
Page 83 of 94
Table No: 4.4.3 Regression table of the independent variable
Model Unstandardized Standardized t Sig.

Coefficients Coefficients
B Std. Error Beta
(Constant) 6.189 .577 10.725 .000
Satisfaction towards .417 .099 -.545 4.199 .000
1 Price
Service policy .114 .077 .187 1.473 .000
Damage policy .157 .101 -.200 1.550 .128
Hypothesis model for the regression

Willingness to continue association with Coca Cola=6.189+ (0.417) * satisfaction
towards price + (0.114) * service policy
This model can be accepted as all the variables expect damage policy have p value
greater than 0.05
Table No: 4.4.4 Model summary

Model R R Square Adjusted R Std. Error of the
Square Estimate
1 .535 .286 .240 .39547
Interpretation:
R square value is 0.286 which implies, the percentage variation in willingness to
continue association with coca cola is explained by the model is 28.6%. We conclude
that the model is good.
Page 84 of 94
CHAPTER 5
Summary of Findings, Conclusions and
Suggestions
Page 85 of 94
5.1 Summary of Findings
In this research topic the Effectiveness of Distribution channel of Coca Cola was
analysed and data has been collected and analysed through SPSS and some
interpretations were made on tests carried out.
 We came to know that 60% of the outlets come under Grocery, 26% of them
under Convenience, 14% of them under Eat and Drink
 All the outlets were selling coca cola products.
 From sample size of 50 outlets, 30% of them are selling coca cola products for
4-6 years, 70% of them are selling Coca cola products for more than 6 years.
 We can say that out of 50 outlets 24 of them are purchasing products from Om
Shakti enterprises and 26 of them are purchasing from other distributers.
 We can say that all the outlets are selling almost all the products of Coca Cola
but Sprite is selling in all the outlets and Rim Zim jeera is selling in only half of
the outlets.
 We can say that all the respondents are purchasing almost all quantity products
sold by coca cola.
 It is clear that 48% of the outlets are purchasing 400-500 cases per year. 32%
of them 300-400 cases, 18% of them 200-300 cases, and 2% of them are
purchasing above 500 cases.
 Out of 50 outlets 38(76%) of them are using cash and carry as their payment
method and remaining 12(24%) of them are using credit as their payment
method.
 Out of 12 outlets who are using credit basis to payment, 8 of them want 0-3
days, 4 of them want 4-7 days for the payment.
 To the 58% outlets, wants the sales person to in week is visit one time and to
42% outlets sales person is visit for two times in a week.
 35% of the outlets neither agree nor disagree that promotional activities
influence purchase
 76% of the outlets feel that quality of the product influence purchase.
 62% of the outlets neither or disagree that price margin influence purchase.
 48% of the outlets agreed that company policy influence purchase.
 54% of the outlets agreed that sales service influence purchase.
Page 86 of 94
 It shows that, to the 74% outlets, distributer vehicle to visit in a week and to
18% outlets, distributer vehicle to visit once and 6% outlets distributer vehicle
to visit Alternative days and 2% outlets, distributer vehicle to visit daily.
 It shows that, it takes 6-12 hours (86%, i.e. 46 outlets) for delivery of coca cola
product and the remaining takes 1-2 days (14%, 4 outlets) for delivery of coca
cola product.
 It is clear that almost all the outlets are provided with cooler and some of them
are provided with banners and posters also as the promotional materials.
 Out of 50 outlets, 36(72%) of them are highly agreed to continue the association
with coca cola and remaining 14(28%) of them agreed to continue association
with coca cola.
 There is a difference between means of longevity of sales of coca cola with their
service policy of the coca cola
 There is a difference between means of longevity of sales of coca cola with their
 There is no difference between means of longevity of sales of coca cola with
their credit policy
their damage policy
their discount policy.
their satisfaction towards speed of delivery
their satisfaction towards payment method.
their satisfaction towards promotion.
their satisfaction towards schemes.
their satisfaction towards price.
their satisfaction towards behaviour of market growth representative
Page 87 of 94
their satisfaction towards behaviour of delivery boys.
their willingness to continue association with coca cola
 There is a significant relationship between satisfactions towards payment
method and willingness to continue association with coca cola.
 There is a significant relationship between satisfactions towards schemes and
 There is a significant relationship between satisfactions towards price and
willingness to continue association with coca cola
 There is no significant relationship between satisfactions towards speed of
delivery and willingness to continue association with coca cola
 There is no significant relationship between satisfactions towards promotion
 There is no significant relationship between satisfactions towards behaviour of
delivery boys and willingness to continue association with coca cola.
 There is no significant relationship between credit policy and willingness to
 There is no significant relationship between damage policy and willingness to
 Thus, satisfaction towards price, service policy and damage policy has a
significant impact on the willingness to continue association with Coca Cola.
Page 88 of 94
5.2 Conclusion
 This study concludes that almost all the outlets were selling coca cola products
are purchasing Coke from the company only.
 The study shows that the retailers have no problems with the behaviours of
MGR and delivery boys.
 Retailers suggested the company to give more offers and schemes, as almost
all of them said that they not getting more offers and schemes.
 The outlets are want some other promotional materials along with cooler such
as banners, posters, and name board.
 Almost all the outlets are looking for the good quality products.
 Most of the outlets who are in credit based payment method said that they
need 4-7 days’ time to make the payment.
 Distribution Channel plays a very important role especially with respect to the
soft drinks industry because if the product is not available on time the consumers
will switch on to other brands and the company will lose its market share and
hence an effective distribution channel is the need of this industry.
5.3Suggestions
 The Company should improve the promotional activities in all outlets.

 Maintain stock properly
 Make little more effort in the part of distribution.
 Have more convenient vehicles for the transportation of the goods.
 The company has to convert Pepsi Outlets into coke outlets by giving them
promotions like schemes, gifts, proper supply.
 Company should provide visi cooler to every outlets. Because who is having
visi cooler of which company they are promoting the same brand to the
consumer.
 Company should focus on the consumer taste and preference and launch new
product according to the consumer taste and need.
Page 89 of 94
References
1. Mallen, B. (1973). Functional spin-off: a key to anticipating change in
distribution structure. The Journal of Marketing, 18-25.
2. Lusch, R. F., & Brown, J. R. (1996). Interdependency, contracting, and
relational behavior in marketing channels. The journal of Marketing, 19-38.
3. John, G., & Weitz, B. A. (1988). Forward integration into distribution: an
empirical test of transaction cost analysis. JL Econ. & Org., 4, 337
4. Dwyer, F. R., & Welsh, M. A. (1985). Environmental relationships of the
internal political economy of marketing channels. Journal of Marketing
Research, 397-414.
5. Frazier, G. L., & summers, J. O. (1986). Perceptions of interfirm power and its
use within a franchise channel of distribution. Journal of Marketing Research,
169-176.
6. Dwyer, F. R., & Oh, S. (1988). A transaction cost perspective on vertical
contractual structure and interchannel competitive strategies. The Journal of
Marketing, 21-34
7. Coughlan, P., & Coghlan, D. (2002). Action research for operations
management. International journal of operations & production
management, 22(2), 220-240.
8. Karray, S., & Zaccour, G. (2007). Effectiveness of coop advertising programs
in competitive distribution channels. International Game Theory Review, 9(02),
151-167.
9. Frazier, G. L. (1999). Organizing and managing channels of
distribution. Journal of the Academy of marketing Science, 27(2), 226-240.
10. Gudonavičienė, R., & Alijošienė, S. (2008). The specific features of marketing
channel design. Engineering Economics, 56(1)
11. Gaski, J. F. (1984). The theory of power and conflict in channels of
distribution. The Journal of Marketing, 9-29.
12. Gross, U., Valle, C., & Diaz, M. M. (2006). Effectiveness of distribution of
multimicronutrient supplements in children and in women and adolescent girls
of childbearing age in Chiclayo, Peru. Food and nutrition
bulletin, 27(4_suppl4), S122-S129
Page 90 of 94
13. Obaji, R. N. (2011). The effects of channels of distribution on Nigerian product
sales. The International Business & Economics Research Journal, 10(2), 85-91
Appendices
QUESTIONNAIRE
Dear sir/madam
I am BASANAGOUDABERGI student of KRISTU JAYANTI COLLEGE MBA

Programme, Bangalore, as per the academic requirement I am doing a research on “A
study on Effectiveness of distribution channel in Bangalore city” with reference
to Hindustan Coca-Cola Beverages Pvt.Ltd. So I kindly request you to spare some
valuable time in filling this questionnaire. And I can assure that the collected
information will be confidential.
1. Name of the retailer…………

2. Name of the Outlet…………….
3. Address……………….
4. Contact number………………
5. Type of Outlet
a. Eat and Drink
b. Grocery.
c. Convenience
d. Bar and Restaurant
6. Are you selling Coca-Cola cool drinks?

a. Yes.
b. No,
7. From how long you are selling Coca-Cola soft drinks?

a. Less than.1.year
b. 1--3 years
c. 4--6 years
d. More than.6.years
8. From where you are purchasing Coca-Cola products?

a. Om Shakti Enterprises
b. Market
c. Other distributors
Page 91 of 94
9. Which of these Coca-Cola products you are selling?
a. Coca-Cola
b. Thumbs up
c. Fanta
d. Sprite
e. Limca
f. Rim Zim Jeera
g. Maaza
h. Minute made
i. Kinley 20Ltrwater
j. Kinley soda
10. Which quantity of soft drinks gets more sales?

a. 200 and 300 ml RGB
b. 250 ml pet bottles
c. 750 ml pet bottles
d. 2.25 ltrs pet bottles
e. Tetra packs
11. Average volume of products purchased by outlets per year.

a. 200-300 cases
b. 300-400 cases
c. 400-500 cases
d. Above 500 cases
12. Payment type

a. Cash and Carry
b. Credit
13. Credit period required for payment

a. 0--3 days.
b. 4--7 days.
c. 8--11 days.
d. 12--15 days.
e. More than.15.days.
14. Sales man visit per week.

a. One time
b. Two time
15. Which factors influence you to purchase products from Coca-Cola your
experience with the Coca-Cola distribution Centre? ( 1 = Strongly dissatisfied
and 5 = Strongly satisfied )
Page 92 of 94
Factors 1 2 3 4 5
influence
Promotional
activities
Quality of
product
Price
margins
Company
policy
Sales service
Speed of
delivery
16. Rate the following factors from 1-5 according to your experience with the
Coca-Cola distribution Centre. ( 1 = Strongly dissatisfied and 5 = Strongly
satisfied )
Factors 1 2 3 4 5
Speed of Delivery
Payment method
Promotion
Schemes
Price
Behaviour of market
growth representative
Behaviour of delivery
boys
17. How many times would you expect distributer vehicle to visit you
a. Once
b. Alternative days
c. Daily
d. In a week
Page 93 of 94
18. How much time does it take for delivery of coca cola product, product after
ordering
a. 6-12 Hours
b. 1-2 Days
c. 2-7 Days
d. More than 7 Days
19. Rate the following policy of the coca cola company according to your
experience with the coca cola distribution Centre ( 1 Strongly dissatisfied and
5 = strongly satisfied
Policy 1 2 3 4 5
Credit policy
Damage
policy
Discount
policy
Service
policy
Margin of
the company
20. What are the promotional materials provided by the company?

a. Cooler
b. Banners
c. Posters
d. Wall painting
e. Name board
f. Pet rack
g. Umbrella
h. ROP ( Retail Outlet Painting )
21. I am willing to continue my association with Coca-Cola
a. Highly disagree
b. Disagree
c. Neither agree nor disagree
d. Agree
e. Highly agree
Page 94 of 94

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CHAPTER 1

Many different types of organizations participate in marketing channels. Channel

1.2 Channel Intermediaries and Their Functions

Intermediaries in a channel negotiate with one another, facilitate the change of

Generally, product characteristics, buyer considerations, and market conditions

1.3 Channel Functions Performed by Intermediaries

Retailing and wholesaling intermediaries in marketing channels perform several

The three basic functions that intermediaries perform are summarized

Transactional functions involve contacting and communicating with prospective

Facilitating functions includes research and financing. Research provides information

1.4 Marketing Channels for Consumer Products

Producer Producer Producer Producer

Retailers Retailers Retailers

Consumers Consumers Consumers Consumers

1.6 Making Channel Strategy Decisions

Devising a marketing channel strategy requires several critical decisions. Managers

1.8 The Role of Retailing

The Indian economy is heavily dependent on retailing. Retailers ringed up over

1.9 Importance of retailing in the Indian economy

1.10 Functions of Distribution Channels

So as to comprehend the significance of dispersion channels, you have to comprehend

Coordination and Physical Distribution: Marketing channels are in charge of get

Advertising: Distribution channels are additionally called promoting channels since

1.11 Importance of distribution channel

Producers may dependably don't generally require conveyance channels. As talked

1. They create exchange efficiency by reducing the number of contacts needed.

4. These can offer promotion and financial support

1.12 Defining Wholesaling and Logistics

1.14 Developing Global Marketing Channels

1.15 Channels and Distribution Decisions for Services

Because service industries are so customer oriented, customer service is a priority. To

2.2 REVIEW OF LITERATURE

1. Mallen, B. (1973).did a study on Functional Spin-Off: A Key to Anticipating

4. Dwyer, F. R., & Welsh, M. A. (1985).did a study on Environmental

8. Karray, S., & Zaccour, G. (2007) did a study on Effectiveness of coop

9. Frazier, G. L. (1999).did a study on Organizing and Managing Channels of

2.3 STATEMENT OF THE PROBLEM

The study is mainly conducted to know the effectiveness of distribution

Null Hypotheses H0: There is a significant relationship between Factors influencing

Null Hypotheses H0: There is a significant relationship between satisfaction level of

2.6 RESEARCH METHODOLOGY

Research methodology is a systematic and speculative analysis of the techniques

Source of data collection:

2.7 SCOPE OF THE STUDY

2.8 LIMITATIONS OF THE STUDY

 This study was restricted to only Bangalore market

2.9 CHAPTER SCHEME

BEVERAGE INDUSTRY OVERVIEW

About Beverage Companies in India.

List of some Top Beverage Businesses in India

 Ace, continental Exports.

3.2 COMPANY PROFILE

 Rain water harvesting initiatives

WE WORK IN FOLLOWING AREAS OF INTERVENTION:

 Access to health and sanitation

Access to health Creating livelihood

 HCCBPL has an extensive distribution system spanning more than a million

HCCBPL’s product portfolio has an extensive range to choose

HCCBPL’s water stewardship initiatives are based on responsibility

Replenish- support replenishing activities and sustainable community water

3.3 DEPARTMENT PROFILE

The finance department of a business takes responsibility for organising